Date : Jul 25, 2019
Construction Law Update by Elizabeth Poeschl
Pay Your Bills!
New Retainage Legislation Impacts Public and Private Construction Work
Subcontractors historically complain about owners and general contractors refusing to release their retainage amounts in a timely manner. Legislation was recently passed in response to these complaints. This new legislation mandates broad changes to how and when retainage must be released. This legislation applies to contracts executed on or after Aug. 1, 2019, on both private and public projects.
There are two statutes that effect the retainage amendments, one affecting public contracts (Minn. Stat. § 15.72, Subd. 2) and the other private projects (Minn. Stat. § 337.10, Subd. 4). The discussion below identifies the changes. All contractors should be aware of these changes, and should fully incorporate the changes into all future contracts and payment practices.